The price band for the offer has been fixed between Rs 240 and
Rs 250 per equity share of Rs 10 each
Syngene International (Syngene or the company) has obtained the approval of the Registrar of Companies (RoC) for its Red Herring Prospectus, for an Initial Public Offering (IPO). The IPO is an offer for sale (OFS) by Biocon (Biocon) of a part of its shareholding in Syngene.
Biocon along with its subsidiary, Biocon Research, currently holds an 84.5 per cent equity stake in Syngene. The company has already obtained necessary approvals from SEBI and FIPB.
The offer will open for subscription on Monday July 27, 2015 and will close on Wednesday, July 29, 2015. The company and the selling shareholder may, in consultation with the BRLMs, consider participation by Anchor Investors in accordance with the SEBI ICDR Regulations. The anchor investor bid/offer period shall be one working day prior to the bid/ offer opening date.
The price band for the offer has been fixed between Rs 240 and Rs 250 per equity share of Rs 10 each.
Commenting on the development, Kiran Mazumdar-Shaw, Chairperson and Managing Director, Biocon said, “The ROC approval of the Red Herring Prospectus is an important milestone for Syngene and we are extremely excited to take forward the IPO process. We believe that Syngene has earned a global reputation in the area of integrated discovery and development services for novel small molecules and biologics and are confident of the value proposition that the company offers.”
Peter Bains, Chief Executive Officer, Syngene said, “We are naturally very happy to receive the RoC approval for our proposed IPO and look forward to listing of Syngene. We are an experienced CRO with a proven track record of providing quality discovery, development and manufacturing services for new molecular entities to biopharma and life science companies around the world. We believe we are very well-positioned to benefit from the growth in the global CRAM’s market and see this listing a natural next step in our evolution.”
Syngene has 200 million equity shares outstanding and the offer will constitute 11.0 per cent of the post-offer paid-up equity share capital of Syngene and this includes a reservation of two million equity shares for subscription by Biocon Shareholders. The net offer (being the offer minus the Biocon shareholder reservation portion) will constitute 10 per cent of the post-offer paid-up equity share capital of Syngene.
The issue will be undertaken through the book building process wherein 50 per cent of the net offer shall be allotted on a proportionate basis to qualified institutional buyers, at least 15 per cent of the net offer shall be available for allocation on a proportionate basis to non-institutional investors and at least 35 per cent of the net offer shall be available for allocation on a proportionate basis to retail individual investors.
The equity shares being offered are proposed to be listed on the BSE and the National Stock Exchange of India.